City Capital Ventures LLC bought Toronto-based quick-service restaurant franchisee Redberry Group for an undisclosed amount.
The deal is supported by Redberry's two franchiser partners, Pizza Hut and Burger King, which was purchased by 3G Capital Inc. through the firm's portfolio company Restaurant Brands International LP.
City Capital is looking for a new CEO to lead the acquired company, while the rest of the management team will remain intact. Saxonwold Capital will also invest in Redberry.
City Capital managing partner and co-founder Dan Kipp will join Redberry's board, as will Saxonwold President Rob Selati and former Caribou Coffee Chairman Gary Graves, who will become chairman.
City mainly invests in consumer, commercial and service companies needing up to $100 million of capital.
CIBC and Scotiabank provided senior debt financing. McCarthy Tétrault LLP was legal adviser to City Capital with additional services from Perkins Coie LLP. Metronome Partners was financial adviser to Redberry.